Capital expenditures not only generate immediate jobs in the construction and machinery industries. When that money goes into new and existing manufacturing facilities, more jobs are created, and productivity typically swells. Rising productivity, as any economist worth his salt will tell you, is the key to a growing standard of living.
A recent Census Bureau report provides a glimpse into U.S. capital spending from 1999 through 2006. Exhibit 1 summarizes total private capex on structures and buildings. Over the eight-year period investments in equipment of various sorts fell only slightly from nearly 70 percent of total capex to 66 percent.
Drilling further into the Census Bureau data, Exhibit 2 compares spending on equipment for durable goods production with all other equipment capex. Most value-added finished wood products like cabinets and furniture are classified as durable goods. During the eight-year period, spending on this category fell from 14.6 percent to 11.5 percent of total equipment investment.
Using other Census Bureau data, Exhibit 3 shows equipment spending in three key value-added wood products sectors: wood furniture, cabinetry, and millwork. The cabinet sector's growth from $272 million to $468 million over the period cushioned the impact of domestic wood furniture's demise. In 2006 the cabinetmakers accounted for nearly three quarters of total capex by the main woodworking sectors. Unfortunately spending by the cabinet sector will drop precipitously following the demise of residential construction in 2006.
Average annual spending on equipment by the three sectors was $550 million.
While spending on all manufacturing equipment in the U.S. totaled $149 billion in 2006, this number was dwarfed by spending on residential construction. Exhibit 4 shows the stunning growth of investment in housing compared to that in manufacturing equipment.
Not coincidentally, housing is the beneficiary of two large tax incentives: (a) the mortgage interest deduction and (b) the $500,000 tax shelter for sellers of their primary homes. Given these advantages, it's no wonder that so much capital in the U.S. has been routed toward housing. As we know now, much of that capital has disappeared with the recent, historic fall of home prices and defaults on mortgage loans.
Would the extra capital spent on housing have been better invested in new equipment and technology by private industry? Spending on houses does create jobs in construction and the production of numerous wood products. The National Association of Home Builders claims that three jobs are created by building a single house. But half of those jobs are in construction and are somewhat temporary. And many of the wood products like flooring and cabinetry would be featured in smaller homes in any event.
So let's look at the facts. In 1999 each dollar of Fixed Assets (TFA) in the U.S. produced $0.379 of Gross Domestic Product (GDP). By 2007 the GDP/TFA ratio had fallen to 0.33. Simultaneously the ratio of Residential Fixed Assets to Total Private Fixed Assets rose from 0.5 to a peak of 0.546 in 2005. The average between 1948 and 1997 was 0.498.
Take away the extraordinary housing boom. If the fixed asset ratios had remained at the values of the mid-1990s, business investment would have grown by $1.5 trillion in 2007. With that additional capital employed productively, 2007 GDP would have run about $15.9 trillion vs. $13.8 trillion. Today's recession would have been a non-starter. More importantly, the higher investment in business may have preserved a portion of U.S. competitiveness in manufacturing.
MDF is the only exception with prices at all-time highs. Even at that level mills are suffering from higher costs.
Major machinery producers Weinig and Biesse and the largest U.S. distributor, Stiles Machinery, have decided not to exhibit at this July's AWFS Show in Las Vegas.
According to the KCMA's Trend of Business Survey, December cabinet sales fell by 26.7 percent versus the same month last year. Year to date cabinet sales have dropped 19.3 percent vs. 2007. Stock cabinet sales were down 18.5 percent, custom sales down 20.6 percent, and semi-custom sales off 19.9 percent showing weakness across all price points. The 2008 performance follows the 8.2 percent decline in 2007 vs. 2006, the last year of solid growth in this sector.
Three Mississippi upholstery makers have been approved as foreign trade zone manufacturers by the U.S. Department of Commerce. This designation enables these firms to buy duty-free imported fabrics, reduce their raw material costs, and save about 950 jobs.
China-based leather upholstery producer DeCoro is being liquidated. In November the company had announced new financing in an effort to stem rumors of bankruptcy. The company was a pioneer in upholstery production in China opening there in 1997 and eventually building two plants totaling 2.9 million square feet.
Office Furniture
BIFMA, the sector trade association, reported a 17 percent decline in December office furniture orders. Shipments fell by 12 percent y-o-y, the sharpest drop since April 2003. Full year shipments declined by 2 percent compared with 8 percent and 6 percent growth in 2006 and 2007 respectively. Analysts are now cautious about this sector's prospects given weakening in demand drivers such as white-collar employment, new office construction, and corporate profits. BIFMA's own forecast for 2009 calls for a 13.1 percent decline in orders and an 11.6 percent drop in shipments.
At the company level…
- Steelcase, the world's largest manufacturer of office systems and business furniture, reported an 8.4 percent drop in 3Q2009 sales. North American revenues fell by 11.4 percent. Operating income declined to 1.8 percent vs. 5.9 percent in the same period last year.
- Herman Miller announced that its 2Q2009 sales declined by 5.8 percent to $476.6 million. Incoming orders plunged 25.6 percent; backlog, 18.7 percent. Operating income fell from 12.9 percent to 11.5 percent.
Non-Residential Construction
The American Institute of Architects' Architecture Billings Index increased slightly to 36.4 in December from November's 34.7. Last December the Index was at 55.
Fair Pay, by John Satagaj, email@jsatlaw.com
There is a new employment law on the books. While I do not think most of you will have to worry about it, you know those trial lawyers…The law is the Ledbetter Fair Pay Act. It passed the House and Senate in heartbeats and the President signed it as soon as it was delivered to him.
The law amends Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA) to clarify that compensation discrimination occurs each time compensation is paid, even though the original alleged discriminatory decision was made many years ago. Under what is now prior law, there was a 180-day window for filing discrimination charges after the act of discrimination. In 2007, the U.S. Supreme Court ruled that Lilly Ledbetter, who had filed a complaint many years after an alleged discriminatory pay decision, was prevented from filing a claim. Under the new law, an employee can file a pay discrimination claim any time the employee receives a new paycheck, thus rendering moot any statute of limitations.
This is what I can tell you about this new law. First, the coverage threshold for a business for Title VII and the ADA is fifteen or more employees, and the ADEA threshold is twenty or more employees. Second, while the Ledbetter case was about compensation discrimination based on sex, the bill covers compensation based on race, color, religion, sex, national origin, age, or disability. Third, the nature of the claims under tend to be based on a more subjective standard than the analysis for EPA claims in H.R. 12, and therefore the outcomes are more difficult to predict.
You may recall that the House actually passed two laws. The second was H.R. 12, the Paycheck Fairness Act. The Senate decided to deal now with only the Ledbetter issue. We expect the Senate to consider a companion bill to H.R. 12; we just do not know when.
H.R.12 deals with a separate Equal Pay Act (EPA) issue. It revises the "any factor other than sex" defense by requiring employers to provide non-gender reasons for the difference in wages based on a business justification.
The EPA is actually part of the Fair Labor Standards Act (FLSA) but is administered and enforced by the Equal Employment Opportunity Commission (EEOC). It prohibits sex-based wage discrimination between men and women in the same establishment who are performing under similar working conditions.
The EPA requires that men and women be given equal pay for equal work in the same establishment. The jobs need not be identical, but they must be substantially equal. It is job content, not job title, that determines whether jobs are substantially equal. Specifically, the EPA provides that employers may not pay unequal wages to men and women who perform jobs that require substantially equal skill, effort, and responsibility, and that are performed under similar working conditions within the same establishment. Pay differentials are permitted when they are based on seniority, merit, quantity or quality of production, or a factor other than sex. These are known as "affirmative defenses" and it is the employer's burden to prove that they apply. These are the defenses H.R. 12 seeks to revise.
Since the EPA is a provision of the FLSA, the basic employee threshold is that of the FLSA, which means it is generally applicable regardless of the number of employees (e.g., a retail establishment with an annual dollar volume of sales of less than $500,000 and no employees engaged in interstate commerce). The exemptions of the FLSA (e.g. white collar) do not apply.
Of course, while Congress was debating the merits of these bills, everybody had one eye on what is expected to be the big showdown between employers and organized labor-the legislation that would do away with secret ballot elections in efforts to establish unions at individual businesses. The last we heard is that there are indications Senator Majority Leader Harry Reid (D-NV) might wait until this summer to bring it up in the Senate. The House will probably consider it much sooner.
WMMA's Export Trade Certificate: Opportunity to Join, by Harold Zassenhaus, zemg@erols.com
Since February 1989, the U.S. Departments of Commerce and Justice have granted anti-trust protection for the export activities of WMMA members electing to be covered under the WMMA Export Trade Certificate (ETC).
Each year, the WMMA goes through an amendment procedure allowing additional members to be covered under the ETC umbrella. (Current members must complete a separate form being emailed to them directly). There is no cost to sign up. Interested members must complete the form found at http://www.wmma.org/members/secureDocument.cfm?docID=236 required by the US Department of Commerce and return it by March 11, 2009 to Harold Zassenhaus, Zassenhaus Export Management Group, 7803 Maple Ridge Rd., Bethesda, MD 20814, zemg@erols.com
Background
The Export Trade Certificate is issued under the Export Trading Company Act of 1981. Under a provision of the ETC Act, which is implemented by the US Department of Commerce, US exporters can obtain anti trust immunity from federal and state criminal and civil prosecution for export activities. The Act also can provide reduced anti trust liability in private actions against exporters.
Practical Application
The WMMA is the sponsor of the WMMA Certificate. Under the protective umbrella of the ETC, firms that are listed under the certificate can join together, without the threat of most anti-trust regulations, to reduce export related costs and/or increase effectiveness in export operations. The following are examples of activities that can be initiated with a competitor company listed under the WMMA Certificate:
System Selling, Joint Bidding and Other Selling Arrangement
Any number of ETC members may join together even if they are domestic competitors and submit a single bid on a particular export project or tender. They can use the same overseas representative, agree to sell separate products as a unit, as a system, prepare joint catalogs, and allocate sales that result from joint bidding or selling arrangements. In today's woodworking clients are increasingly looking to save time and costs, the machines they put in place will work together seamlessly and the system can be installed and serviced through a singular organization. An ETC can assist by marrying suppliers to the job and even taking responsibility warranty and servicing.
Pricing Policies
Two or more members may agree to establish minimum uniform prices for particular products. They may engage in joint negotiations on prices and terms of sale with foreign buyers.
Service and Promotional Activities
Certificate members may jointly engage in a variety of activities that will promote or support their export sales. These can include establishing joint warranty service and training centers, conducting joint trade shows or missions and joint advertising.
Sales Forecasting Tools (Members Only)
WMMA Economic Outlook Report—Winter 2008-2009
Construction Put in Place—December 2008
New Residential Construction—December 2008
Purchasing Managers Index—January 2009
U.S. Leading Indicator—December 2008
The European Union's "Metric Only" Directive—A "Good News" Update
One of the industry's long-running U.S.-EU trade issues—the European Union's "Metric" or "Metric Only" Directive—has reached an important milestone. Since 1980 when the then European Communities adopted its original Metric Directive to promote, indeed mandate, use of metric measurements and labeling, the U.S. and other trading partners as well as leading business groups and trade associations around the world registered concern about several aspects of the EU's Metric-only policy and regulations. The key issue has been labeling. The EU has pushed for "Metric-only" labeling" on all products to be sold in the EU; the U.S. and others have pushed back. Things like pounds, ounces, feet and inches, tons, psi, etc have all been threatened. Obviously being forced to do totally separate labeling and packaging, one for EU markets and one for the U.S. and rest of the world which allow dual labeling, would significantly increase costs and logistical complications for U.S. manufacturers. A series of temporary exceptions, deadlines, and extensions have been negotiated by the U.S. and EU governments through the years. The latest negotiated exception allowing products to be dual-labeled (metric and U.S. or other labeling/measurements) in the EU has been set to expire December 31, 2009.
Thanks to excellent, sometimes tedious and painful, work from the U.S. government (specifically the U.S. Department of Commerce, the Office of the U.S. Trade Representative, the National Institute of Standards and Technology, and the U.S. Department of State) and good cooperation from the various arms of the European Union, we appear well on the way to a longer-term, quasi-permanent solution allowing the dual labeling be extended. The agreement negotiated earlier in 2008 to allow dual-labeling has been moving through the cumbersome EU institutions in late 2008. Formal adoption by both the European Council (the 27 EU member states) and the European Parliament is required to amend the directives.
On November 18, the European Council formally adopted the revisions. Those amendments were published in the EU's Official Journal on December 30, 2008. The link to that Council Act is:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2008:330E:0001:0006:EN:PDF
And on December 16, the European Parliament formally adopted the revisions to the Directive 80/181/EEC. That EP action should also be published soon in the EU's Official Journal.
Once those final EU formalities have been completed, hopefully early in 2009, then each of the 27 EU member state governments will have to adopt and publish the necessary laws and regulations by December 31, 2009 so that the revisions can be fully in force on January 1, 2010.
Is Your Company Leaving Money on the Table?
The January issue of the Record, the publication of the National Tooling and Machining Association (NTMA) features an article (part one of a two-part article) on the R&D Tax Credit and Black Line Group. Click here to read.
Because of its very specialized nature, large numbers of small and mid-size manufacturers are not taking advantage of this underutilized part of the tax code that provides qualifying firms with substantial tax benefits.
The definition of Research and Development (R&D) is much broader than people realize. Manufacturers of all kinds, including metal stampers and fabricators, welders, precision machiners, mold builders and plastic injection molders often believe that they DON'T have R&D taking place. They mistakenly believe it's only their customers who are doing the R&D, and that they are simply making products for their customers who provide them with drawings for products/parts. However, these companies can have substantial R&D taking place through their "PROCESS" development and improvement activities.
For companies that have not taken advantage of the R&D Tax Credit in the past, this can potentially mean the creation of immediate and substantial amounts of cash, minimally into the many tens of thousands of dollars, and often $100,000 or more. In addition, companies can reduce future tax liabilities and improve cash flow.
Black Line Group is one of the nation's leading providers of R&D Tax Credit services. For more information about the R&D Tax Credit and Black Line Group's work, call Scott Schmidt at 763-550-0111 or visit our website at www.blacklinegrp.com.
MEP Association Launches Next Generation Manufacturing Study
The study will measure small business progress in adopting world-class performance strategies.
The American Small Manufacturers Coalition (ASMC) has launched a study to assess America's progress in adopting manufacturing strategies necessary to win in the global economy.
WMMA members are urged to consider participation. The Next Generation Manufacturing Study is available to manufacturers at www.NGMStudy.com. Responses to the questionnaire are due March 15, 2009. Study participants will receive a customized benchmarking report comparing their progress to the overall results. For more information on the study contact Carrie Hines of ASMC at carrie.hines@smallmanufacturers.org.
The study is based on MEP centers in 17 states. MEP is a national program that helps small and midsize manufacturers implement competitiveness strategies. Collectively, these states are home to more than 150,000 manufacturers employing more than 5 million workers.
Next Generation Manufacturing refers to a framework of six forward-looking strategies that are driving manufacturing growth and profitability in the 21st century, said Mike Klonsinski, ASMC board chair and executive director of the Wisconsin MEP. The strategies are customer-focused innovation, systemic continuous improvement, advanced talent management, global engagement, extended enterprise management and sustainable products and processes.
Manufacturing Performance Institute (MPI), a global research firm, is conducting the study.
NAM: Small Program Generates Big Benefits
January 19, 2009
If a sudden increase in priorities and resources for export promotion were to become available, one program that could be ramped up very quickly is the Commerce Department's Market Development Cooperator Program, according to Frank Vargo, the National Association of Manufacturers' vice president for international economic affairs.
The program offers grants to vertical trade associations or other groups for programs or promotional offices designed to enhance exports. The grants fund up to one-third of the cost and last for three years.
Read more at ShippingDigest.
Membership Services Committee Launches New Outreach Program by Tim Mueller, Membership Services Chair, TimeSavers, Inc.
In December of 2008 the Membership Services Committee entered into an agreement with James Beach and Associates on a new project titled the Membership Outreach Program. During a previous meeting, the Committee members determined that although our members are very aware of the discount they receive on booth space at the IWF show, most of them have little or no understanding, or knowledge of, the many other benefits included when a member of WMMA. A number of projects aimed at informing our members by the WMMA Management Team and Committees have been attempted over the years, most of which were only minimally successful. After reviewing the past attempts it was decided that what was missing was a dedicated person with the right combination of skills and the commitment of time to work directly with our members to help them understand the many available benefits and how to use them.
Over the next year Jim Beach, of Beach and Associates, will be contacting current members (both by phone and by personal visits) to review all the benefits. He will also gather information that will make it easier to direct correspondence to the proper contacts at your locations.
The new Membership Outreach Program will need your cooperation to be a success. Please give Jim a moment of your time and feel free to ask any questions you may have about WMMA, its goals and how the association may be of additional benefit to you and your company. The association exists only to serve its members, and in these difficult economic times, you may find help is staring you right in the face - you just didn't know it's been here.
Connected, Competitive and Informed,
Attend the Woodworking Industry Conference 2009—April 29 to May 2 at the Sawgrass Marriott, Florida
Register Early—by March 9—for Maximum Savings
Uncertain times may require counter-intuitive behavior!
Now more than ever, it is vital that you stay connected, competitive and informed. Amid the sudden worldwide downturn in manufacturing, WMMA members are making tough decisions about their businesses. Many are also taking the opportunity to renew their commitment to attend events that have proven their value year after year. The Woodworking Industry Conference 2009, taking place April 29 to May 2 at the Sawgrass Marriott, Florida will provide WMMA members with cutting edge leadership strategies and techniques to face this time of economic uncertainty.
What you will learn, see and hear at WIC 2009 should not be missed. This is the conference for WMMA members to question industry partners about business tactics, learn from experts about the latest leadership strategies and hear how peers are addressing challenges in their own organizations Your membership gives you the unique opportunity to meet with other industry movers and shakers in one convenient location during day and evening events designed to advance your business interests.
The Contact Table Program is an incomparable networking opportunity providing a return on investment like no other in the industry. The forums have been expanded to include a "Green User" Forum plus two End User Forums, a Distributors Forum and the Public Policy and Economic Outlook. By popular demand, an Industry Roundtable Discussion and an industry Panel of Change have been added. We've even updated the social networking events. Provided in the cost of your registration is the Early Bird Reception, Opening Night Reception, Beach Party with Beach Olympics and the Closing Night Gala.
Don't miss out on this opportunity to improve your business position in 2009. Be sure to register early—by March 9—for savings. For more information, click here or go to http://www.wmma.org/woodworking-shows/woodworking-industry-conference.cfm. We look forward to seeing you at WIC!
Are you a new member? Have you not attended WIC in five years? Then you may qualify for a free pass! For details, refer to your registration packet mailed to you in January, visit the members' only WIC page to download the promotion coupons available to you (member login and password required), or call Association headquarters.
IWF 2010 Seeks Challenger Awards Judges
IWF needs to fill out the ranks of its IWF 2010 Challenger Awards panel of judges and is looking for qualified candidates from a broad array of backgrounds. WMMA members are urged to submit candidates—end users with extensive expertise with many manufacturing processes, supplies or machines and who work in architectural millwork, residential furniture, cabinetry, CNC routers or the boat building industry, plastic industry, or other non-wood industry. Candidates will be interviewed, evaluated and narrowed to a slate of four candidates recommended to the IWF Board of Directors for voting. Before submitting a name and credentials, WMMA members should confirm that the person recommended wants to be a judge, can commit the time needed to be a judge and, if the individual is not in a position of senior management, will have the approval from a boss or supervisor to be a judge.
The Challenger Awards are known as the woodworking industry's highest honor. The awards recognize advancements in technology or significant contributions to environmental improvement and focus on companies' distinguished innovative technology in products, services, or manufacturing techniques.
Please click here to submit a name, contact information and a statement of interest or email iwf@iwfatlanta.com, including "Challengers Awards—Judge Candidate—Attn: JP Roberts," in the subject line, by March 1, 2009.
Thank you for your assistance in helping IWF find qualified judges for a successful competition in 2010.
New Workshop Added to WIC Program—WMMA Opportunity in India
If you are registered for the WIC you definitely want to reserve Saturday morning, May 2,
8:00 - 9:30, to learn more about the dynamic Indian economy, the exploding market for woodworking equipment and the WMMA's recently opened American Center for Wood Processing.
Ron Somers, President, U.S. India Business Council will open the session to provide participants with some eye opening facts and trends of the Indian economy and share with you the feelings of many U.S. companies that India will continue to grow throughout the global recession and emerge as one of the top five economies of the world. Ron is there to answer your questions and put you in touch with others who are succeeding in India.
Following Ron will be our very own Ken Anslem, President of Western Cutterheads/Mattison Rotary Lathes, a long time WMMA member and Chairman of the American Center for Wood Processing Pvt. Ltd. located in Bangalore, India.
The American Center is a private company representing in India US manufacturers of woodworking machinery, cutting tools and accessories. The American Center is owned by the companies it represents as well as the WMMA. In addition, the American Center is receiving support from the U.S. Department of Commerce.
The objective of the American Center is quite simply to provide to the Indian market the best U.S. woodworking industry products backed up by technical service, warehousing, and demonstration facilities in country.
The American Center now represents nine WMMA companies and is looking to represent more. Learn how this member owned distribution facility can work for you - at a surprisingly low cost.
Updated Contact Information for Export Consultant Harold Zassenhaus
Please make a note of Harold Zassenhaus' updated contact information. Harold Zassenhaus provides assistance to WMMA members in overseas markets. For a brief description of the services he provides members, please click here.
Zassenhaus Export Management Group
7803 Maple Ridge Road
Bethesda, MD 20814
(301) 652-0693
E-mail: zemg@erols.com
Online Dues Payment Debuts
Payment of 2009 WMMA dues online is now possible! Key contacts of those member companies who have not yet paid will be receiving email communications and instructions. No further paper invoices will be mailed.
If you have any questions on dues payment or any other WMMA program or service, please contact WMMA headquarters. Thank you for your membership!
An Important Reminder: Payment after March 2nd will incur a $200 penalty. On April 1st, the non-paying member will be suspended, then terminated for non-payment of dues on May 1st. In order to remain a member in good standing and be eligible for the IWF 20 percent booth discount, current year dues must be paid in full.
Nominations to WMMA Board of Directors Now Open
WMMA's Leadership Development Committee is preparing the slate of Directors for the Board term expiring in 2012. Chairman of the Leadership Development Committee Jim Laster welcomes member suggestions of those who have been active in the Association and its activities.
These individuals should be known for their character, ability and integrity. While acknowledging the strengths of the current organization, nominees must embrace change and recognize the key challenges facing the Association and manufacturers of wood machinery, cutting tools and supplies. Nominations should be sent immediately to Jim Laster, Newman*Whitney—Division of Newman Machine Company, Inc. 507 Jackson Street, P.O. Box 5467, Greensboro, NC 27435-0467 or email him. His email address can be found here under "Past Presidents."
Nominations for the Baldwin Award—Closing Date February 27
Members—click here to nominate an individual who has made outstanding contributions to manufacturing, the wood industry, your company and/or to WMMA. Entries must be received at WMMA headquarters no later than February 27, 2009.
Welcome New Associate Member
TradeSoft, Inc.
3225 Shallowford Road
Suite 330
Marietta, GA 30062
(770) 579-9096
www.tradesoftinc.com
Russ Wheelock, President
Jean Ann Eckhard, Office Manager
sales@tradesoftinc.com
Founded in 1994, TradeSoft provides software solutions for estimating and shop control in custom, quote-driven fabrication shops. These solutions offer an integrated estimating and job management system that replaces disparate stand-alone software packages and manual approaches. Small and medium sized custom manufacturers receive robust software that they can afford along with implementation assistance and technical support.
Franklin Adhesives & Polymers Launches New, Information-Packed Website
Franklin Adhesives and PolymersTM, a division of Franklin International, has launched a new website, www.FranklinAdhesivesandPolymers.com, to provide wood products manufacturers and label makers in-depth information on its broad offering of wood adhesives, pressure sensitive adhesives and specialty polymers—as well as expert guidance for effective adhesive application.
The new site is noteworthy for the interactive experience in delivers to the customer as well as the scope of its content and emphasis on practical information... In addition to providing an interactive "Product Selector," which allows customers to search products by attribute, the site organizes product information by application, product family and industry, making it easy to find the best adhesive for the job. Also available are complete glossaries on common terms used in the wood adhesives, pressure sensitive adhesives and specialty polymers markets; user-friendly troubleshooting and gluing guides; calculators to determine the correct pressure needed for various types of presses; and FAQ sections for answers to common questions on proper adhesive application.
Launch of the new site is in conjunction with the division's recent rebranding from Franklin International's Industrial Division to Franklin Adhesives & Polymers. The company rebranded the division to strengthen its position for continued growth domestically and internationally.
As expected, the report on December durable goods orders confirmed the severity of the current economic decline. Core capital expenditures—non-defense purchases excluding aircraft—fell 2.8 percent. Machinery orders fell 5 percent; technology purchases including computers, 7.2 percent. Capital expenditures in 4Q2008 fell 27.8 percent annual rate, the worst showing in 50 years.
